Why you need Finance Automation in 2024

What is finance automation?

In simple terms, finance automation means using technology to automate what were previously manual tasks. The days of the old paper-based ledger book for example are long gone; however for some businesses, using standalone spreadsheets, paper-based purchase order systems, even payment processing with printed invoices are commonplace.

Finance automation brings significant benefits to the finance function by increasing efficiency, saving time and removing bottlenecks and pressure points within workflows where human error can cause issues.

So how does it work? In a nutshell, workflows and processes are streamlined and AI is used within the software to trigger specific functions after specific steps are taken. This creates an efficient, joined-up approach that is far more efficient and faster than before and also facilitates best practice easily too.

Payroll

Getting payroll right is imperative for every business, otherwise you risk upsetting your employees and damaging morale. But there are multiple elements to consider: different pay levels, holidays, pension payments, sick leave, benefits, it can quickly get complicated and that’s when errors occur. Finance automation for payroll processes takes away the stress and makes the whole workflow much slicker and quicker. Best of all, it reduces the likelihood of getting things wrong.

Reporting

Every finance lead knows that sinking feeling when a report has to be pulled together which requires data from multiple sources. Getting a full and complete picture from which crucial decisions can be made is a huge responsibility and one that needs to be correct. And this is one of the core areas where finance automation makes a real difference. The right software automatically pulls the latest data from across the system and populates the standard or bespoke templates you need at the click of a mouse.

Bookkeeping

Old-fashioned bookkeeping methods were laborious, time-consuming and problematic, even for the most fastidious Finance professionals. Once spreadsheets became available, things did get easier to reconcile. Now however, with the introduction of finance automation, bookkeeping takes even less time and enables businesses to always have a real-time view of their cashflow position rather than having to wait for regular checks and balances to be conducted.

Accounts payable

There are benefits to automating and streamlining your accounts payable function – early payment discounts and less processing time are obvious ones. But bear in mind too that an efficient accounts payable process also means you don’t get charged for late payments either. And it’s great for your supplier relationships and your brand reputation too.

Invoicing

Businesses that don’t get paid on time (or at all) are guaranteed to struggle. Finance automation within the invoicing process speeds up the process, not just in terms of generating timely invoices but also ensuring that alerts are generated if payment is late for example. Automation also enables you to process incoming payments more quickly as well.

Tax

One of the most complex jobs for Finance is to manage tax obligations correctly. This has historically been a time-consuming and difficult process for businesses and can be even more so if some dealings are conducted internationally. Finance software with automation built in can make this notoriously tricky area much simpler to manage as the tax calculations can be done automatically. It’s a game-changer for some.

Why automate your Finance processes?

Many businesses find themselves so focused on their day-to-day challenges, they struggle to ever find the time for large-scale structural changes. And your Finance team probably already know that automation would be beneficial but struggle to find the time and resources to make it happen. But it is worth it. Introducing finance automation software to your business makes it much easier to integrate your systems and improve performance right across your organisation. Everyone benefits.

Automation is the use of software to automatically perform the tasks that a business needs. It helps businesses to process and connect information so that everything runs more smoothly. Key tasks where automation brings advantages are preparing financial statements, account reconciliation and data entry – but the list of potential applications is endless.

6 benefits of Finance automation

There lots of great reasons why finance automation makes sense for your business. For starters, it means your talented and professional Finance team can spend more time on the elements of their function which require human insight and skill - and rather less time on what are essentially administrative functions. Streamlining and automating core processes brings a whole host of other benefits for your business too.

1. More accurate data

Removing manual intervention and data rekeying means that data errors are also reduced. This is good news for your business because it means less time is spent resolving mistakes and ensures that bigger problems don’t occur down the line because a piece of information was wrong.

2. Faster processing

If you stop to think for a moment how long it can take to reconcile accounts manually, you’ll soon see what a difference finance automation can make. Putting automated processing and workflow in place removes the time-consuming manual elements that tend to slow these things down.

3. Deeper insight

This is your chance to reduce the chances of errors creeping in that adversely impact decision-making. Using manually produced and updated spreadsheets simply can’t compare with the integrity and breadth of insight gained from joined-up reporting. It also makes it much easier to identify data gaps and avoid the issues these can create.

4. Improved performance

Finance automation doesn’t replace your finance team, it simply ensures they have more time to focus on the parts of their role that require their specific skills and talents. Introducing modern automated tools should make it easier for them to improve their performance, and help them to identify more easily the areas were the business can improve its financial performance too.

5. More robust security

One of the biggest problems with an over-reliance on disparate systems, clunky processes and manual interventions is keeping security tight. A key benefit of cloud-based finance automation software is that your precious data is kept far more securely than before, and that you have more powerful protections in place.

6. Greater control and oversight

A joined-up system with integration and automation in place means that you also have additional controls available to keep track of who can access what and from where. It’s also easier to maintain a much higher level of oversight over your confidential data.

Is it time to call time on your legacy system?

• Is your accounting platform working as effectively as it used to – or is it starting to creak at the seams?
• Is your Finance team spending far too much time rekeying information and doing admin?
• Is it taking an age to get accurate reports?
• And are you 100% confident that the database is completely accurate?
• Now is the time to start asking and answering the difficult questions.

Learn more about why legacy Finance systems are holding you back

Start work on your business case

There are so many reasons to embrace Finance automation, it’s actually easy to build a pretty compelling business case. From enhanced data integrity and deeper insight to better payment performance and cash flow – the case for automation is a strong one.

Build your business case for accounting automation software.

How to set up finance automation functions

It might seem daunting to begin your automation journey but if you take the leap, the benefits will be worth it. Automation can make a huge difference – not only to your Finance team but across your entire business.

Use our free 10-step Action Plan to automate finance processes.

Automation concerns? What can be done to build confidence in Finance

The Finance department is often the last hiding place for time-consuming paperwork and manual processes – but it doesn’t have to be. Automation isn’t about removing jobs, it’s about making processes more effective, teams more efficient, and maximising the impact of human interaction, skills and problem-solving capabilities. Just like the original industrial revolution, today’s technology revolution is set to change how we operate for the benefit of all.

Find out how Finance department automation enhances Finance roles.